Merchants Expect 200% Upside in MATIC, But Does Polygon Network Data Support That?

MATIC's recent rally and partnerships are turning heads and on-chain activity could portend further growth.

Over the past year, Polygon (MATIC) has focused on growing its list of premier partners, which includes luminaries like Disney, Starbucks, and Robinhood. Recent partnership announcements with Instagram and JPMorgan have prompted speculators to drive the price of the token up nearly 200%.

In addition to partnerships, it is important to analyze blockchain adoption through network usage. Blockchain adoption can be analyzed by looking at daily active blockchain users, protocols using the technology, number of transactions, and total value locked.

Total value locked on Polygon exceeds $1 billion

Total Locked Value (TVL) is a cryptocurrency indicator used to gauge market sentiment towards a particular blockchain. TVL on Polygon requires using the MATIC blockchain and locking funds into the various DeFi platforms available on the network.

Rising TVL is a sign of growth or new liquidity entering the ecosystem, but it does not necessarily mean that the network and associated assets are “going bullish”.

While the 3 major protocols, Ethereum (ETH), Binance Coin (BNB) and Tron (TRX) all have a TVL of over $5 billion, MATIC, Avalanche (AVAX) and Arbitrum are the only others with over $1 billion worth of TVL.

According to data from Token Terminal, Polygon and Fantom (